Chapter 21: Q 18. (page 524)
Are U.S. unemployment rates distributed evenly
across the population?
Short Answer
No, the unemployment rate is not distributed evenly in the US economy.
Chapter 21: Q 18. (page 524)
Are U.S. unemployment rates distributed evenly
across the population?
No, the unemployment rate is not distributed evenly in the US economy.
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Get started for freeBeginning in the 1970s and continuing for three decades, women entered the U.S. labor force in a big way. If we assume that wages are sticky in a downward direction, but that around 1970 the demand for labor equaled the supply of labor at the current wage rate, what do you imagine happened to the wage rate, employment, and unemployment as a result of increased labor force participation?
Is a decrease in the unemployment rate necessarily a good thing for a nation? Explain.
A government passes a family-friendly law that no companies can have evening, nighttime, or weekend hours so that everyone can be home with their families during these times. Analyze the effect of this law using a demand and supply diagram for the labor market: first assuming that wages are flexible, and then assuming that wages are sticky downward.
Under what condition would a decrease in
unemployment be bad for the economy?
Under what condition would an increase in the unemployment rate be a positive sign?
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